Lean Six Sigma

Lean Six Sigma

Six Sigma
Business improvement approach that seeks to find and eliminate causes of defects
and errors in processes by focusing on outputs that are critical to customers.
The term Six Sigma is based on a statistical measure that equates 3.4 or fewer
errors or defects per million opportunities.

Motorola pioneered the concept of Six Sigma.

The late Bill Smith, a reliability engineer is credited with conceiving the idea of
Six Sigma.
GE (specifically CEO Jack Welch) extensively promoted it.

Six Sigma
Core philosophy based on key concepts:
Think in terms of key business processes and customer requirements with focus on
strategic objectives.
Focus on corporate sponsors responsible for championing projects.
Emphasize quantifiable measures such as defects per million opportunities
(dpmo).
Ensure appropriate metrics is identified to maintain accountability.
Provide extensive training.
Create highly qualified process improvement experts -belts.
Set stretch objectives for improvement.

Six Sigma
Contrasts between traditional TQM and Six Sigma (SS) TQM is based largely on worker empowerment and teams; SS is owned by
business leader champions.
TQM is process based; SS projects are truly cross-functional.
TQM training is generally limited to simple improvements tools and concepts; SS
is more rigorous with advanced statistical methods.
TQM has little emphasis on financial accountability; SS requires verifiable return
on investment and focus on bottom line.

Lean Manufacturing
Also refers to Lean, Lean enterprise or Lean Production preserving value with less work
Value = Any action or process that a customer would be willing to pay for
By eliminating 7 wastes:
Transportation, Inventory, Motion, Waiting, Over-Processing, Over Production, Defect

Lean - Advantages
Inventory Cost & Space Reduction
Robust process
Lean Disadvantages
High Cost of Implementation
Change of plant setup and systems

Lack of acceptance by employees

requires constant employee input on quality control

Customer Dissatisfaction

dependent on supplier efficiency, any disruption in Supply chain will adversely affect
customers

Supplier Problems

High dependence on Supplier